Supermarket giant Asda has sold its loss-making photo business to Photo-Me International for £5.35 million.
The division, which comprises 191 photo centres and 172 self-service kiosk sites located in Asda stores, made a loss of £3.4m on sales of £19.3m last year.
The deal to sell the business was struck under former Asda boss Andy Clarke, who has since been replaced by Sean Clarke. Last week, Scotland’s second-biggest food retailer posted a 7.5 per cent slump in same-floorspace sales in the second trading quarter – its worse quarterly performance ever.
In June, Photo‑Me International announced a 4 per cent lift in pre-tax profits to £40m, as revenues rose 3.8 per cent to £184m.
Chief executive Serge Crasnianski said the deal with Asda was “an interesting opportunity to significantly expand our UK business in a strong set of locations and increase our market share in the digital photo printing market”.